Ways to increase your pension: Important details to consider

In the calculation of pension benefits, the Social Security Institution (SGK) divides the insurance period into three distinct eras: before September 9, 1999, between 1999 and 2008, and after 2008. Different rates and coefficients are applied to each period, and the amounts derived from these periods are combined to determine the pension. The period before 1999 stands out as the most advantageous due to a higher Monthly Accrual Rate (ABO). Between two individuals with the same number of premium days, the one with higher earnings before 1999 can receive a higher pension.

WAYS TO INCREASE YOUR PENSION

There are some important rules you should pay attention to in order to increase your pension:

• Report your gross salary at a high level: The earnings subject to premiums reported to the SGK form the basis of your pension. Premiums reported based on the minimum wage result in a low pension.

• Check your pre-1999 premiums: This period is the timeframe that increases the pension the most. Missing or incorrect records must be corrected.

• Pay premiums from multiple workplaces: Paying premiums from two separate workplaces can increase your earnings and positively reflect on your pension.

• Do not make debt payments at the lowest level: Military service and maternity debt payments should be made at a high earnings level if possible.

• Choose the year of application correctly: Years with a high update coefficient mean a higher pension.

• Check your SGK notifications thoroughly: Missing notifications and unregistered employment can result in years of low pension payments.

The pension is not determined solely by looking at the number of premium days. The period you worked, the reported earnings, and the year the retirement application is submitted directly affect the pension. Those who do not pay attention to these rules may unknowingly receive a lower pension.

For example, an insured person with a base pension of 20,000 TL might benefit from a higher update coefficient if they retire in 2025, whereas if they retire in 2026, their pension is calculated as lower because the coefficient has decreased. Therefore, when it comes to retirement, the question is not just "have I completed my premium days?" but also "in which year should I submit my application?" which carries great importance.

News Source: 12punto